Aren't Governments Supposed to Internalize Costs?
17 September 2006
The Editor, New Orleans Times-Picayune
To the Editor:
You rightly argue that Uncle Sam should stop subsidizing flood insurance for vacation homes and big business ("Shoring up flood insurance," September 17). But how do you justify continued subsidies for first homes and small business? Forcing people in Michigan and Maine - and even in Monroe, LA - to pay Gulf Coast residents and shopkeepers to live and work in flood-prone areas is morally offensive. Worse, such subsidies increase the likelihood that future hurricanes will inflict not only massive property damage but also unnecessary loss of life.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New Orleans Times-Picayune
To the Editor:
You rightly argue that Uncle Sam should stop subsidizing flood insurance for vacation homes and big business ("Shoring up flood insurance," September 17). But how do you justify continued subsidies for first homes and small business? Forcing people in Michigan and Maine - and even in Monroe, LA - to pay Gulf Coast residents and shopkeepers to live and work in flood-prone areas is morally offensive. Worse, such subsidies increase the likelihood that future hurricanes will inflict not only massive property damage but also unnecessary loss of life.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Thursday May 24, 2007 at 2:59pm